Government to Fully Promote Economic and Trade Policy Cooperation with ASEAN, a Key Partner in the 'Global South'

Korea-ASEAN Economic and Trade Cooperation Gains Traction
AKTD Launched to Strengthen Ties Amid Global Supply Chain Shifts

Yonhap News

As the global 'tariff war' intensifies, economic and trade cooperation with ASEAN (Association of Southeast Asian Nations) is gaining attention as a new breakthrough. In response to the U.S. high tariff policy on China and the global supply chain restructuring, our government is strengthening cooperation with ASEAN and exploring strategies for rerouting exports to the U.S. market and diversifying supply chains.

A delegation from the Ministry of Trade, Industry and Energy, led by Kim Jong-cheol, Director of the Trade Cooperation Bureau, attended the kickoff meeting of the 'Korea-ASEAN Economic and Trade Think Tank Dialogue (AKTD)' and the opening ceremony of the 'Korea-Southeast Asia Policy Cooperation Center' held on the 7th in Jakarta, Indonesia.

AKTD is a public-private cooperative economic policy research project jointly organized by the Korea Institute for Industrial Economics and Trade and the Korea Chamber of Commerce and Industry. It was officially proposed by Korea at the 25th Korea-ASEAN Summit held in Laos last October and operates as a platform to jointly research and discuss regional economic and trade policies in cooperation with think tanks from the 10 ASEAN countries.

At this meeting, research topics, methodologies, and detailed implementation schedules were discussed, and ASEAN think tanks agreed that combining Korea's industrial development experience with ASEAN's growth potential through AKTD could create significant synergy effects.

Director Kim said, "I hope AKTD will establish itself as a policy platform representing economic cooperation between Korea and ASEAN through substantive activities and serve as a means to contribute to balanced economic development in ASEAN."

The delegation also visited the Indonesian Ministry of Economic Affairs and held a meeting with Irwan Sinaga, Director of the Bilateral Cooperation Bureau. During the meeting, they discussed cooperation measures on various topics such as trade and investment, supply chains, and advanced industries. In particular, they agreed to promptly hold the 'Korea-Indonesia Economic Cooperation Committee,' a high-level economic cooperation channel between Korea's Ministry of Industry and Indonesia's Ministry of Economic Affairs, to jointly explore practical support measures.

This cooperation is linked to the global supply chain changes prompted by the U.S. tariff policy on China. Multinational companies have been implementing the 'China Plus One' strategy, imposing high tariffs on Chinese products and relocating production bases to ASEAN. Korea is also likely to leverage this trend by expanding cooperation with ASEAN and seeking rerouting export strategies to the U.S. market.

The U.S. has signed free trade agreements (FTAs) with some ASEAN countries and is expanding economic cooperation with ASEAN through frameworks such as the Indo-Pacific Economic Framework (IPEF). If additional FTAs between ASEAN countries and the U.S. are established in the future, Korean companies may have opportunities to receive tariff benefits through ASEAN production bases.

An official from the Ministry of Industry said, "In the context of U.S. protectionism and global supply chain restructuring, strengthening economic and trade cooperation with ASEAN can be a key strategy to bypass U.S. tariff policies and enhance global competitiveness," adding, "The launch of AKTD is expected to be an important foundation for this."